Generali (STU:ASG) ROC % : 0.00% (As of Jun. 2024)

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What is Generali ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Generali's annualized return on capital (ROC %) for the quarter that ended in Jun. 2024 was 0.00%.

As of today (2024-12-14), Generali's WACC % is 5.41%. Generali's ROC % is 0.00% (calculated using TTM income statement data). Generali earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Generali ROC % Historical Data

The historical data trend for Generali's ROC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Generali ROC % Chart

Generali Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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0.56

0.94

Generali Quarterly Data
	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Sep22	Dec22	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROC %	Get a 7-Day Free Trial															-	-	-	-	-

Generali ROC % Calculation

Generali's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	6367 * ( 1 - 27.56% )	/	( (488641.75	+	494156.05)	/ 2 )
=	4612.2548	/	491398.9
=	0.94 %

where

	Invested Capital		(A: Dec. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	503236	-	9307	-	( 6887	-	5% * 31995 )
=	488641.75

	Invested Capital		(A: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	508611	-	10663	-	( 7070	-	5% * 65561 )
=	494156.05

Generali's annualized Return on Capital (ROC %) for the quarter that ended in Jun. 2024 is calculated as:

	ROC % (Q: Jun. 2024 )
=	NOPAT	/	Average Invested Capital
=	EBIT * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Mar. 2024 )	+	Invested Capital (Q: Jun. 2024 ))	/ count )
=	0 * ( 1 - 0% )	/	( (0	+	503141)	/ 1 )
=	0	/	503141
=	0.00 %

where

	Invested Capital		(Q: Mar. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	0	-	0	-	( 0	-	5% * 0 )
=	0

	Invested Capital		(Q: Jun. 2024 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Balance Sheet Cash And Cash Equivalents	-	5% * Revenue )
=	521731	-	11638	-	( 6952	-	5% * 0 )
=	503141

Note: The EBIT data used here is four times the quarterly (Jun. 2024) data.

Generali (STU:ASG) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, Generali's WACC % is 5.41%. Generali's ROC % is 0.00% (calculated using TTM income statement data). Generali earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Generali ROC % Related Terms

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Generali Business Description

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ARZGY:USA ARZGF:USA G:Italy Gm:UK 0K78:UK ASG:Germany ASG:Bulgaria

Address

Piazza Duca degli Abruzzi, 2, Trieste, ITA, 34132

Website

https://www.generali.com

The roots of Generali date back to the 1830s and the Bora wind and rough seas that hit the Trieste region. Over that decade Generali sought to expand throughout Italy, but this growth was held back by the fragmented nature of Italy. The Italian Revolution in the 1840s paved the way for easier expansion in the country. After the First World War Trieste was eventually handed back to Italy. The dissolution of the Austro-Hungarian Empire created a fragmented Europe and a fragmented Generali. While to this day Generali remains quite a diversified company, its core operations remain in historical Austro-Hungarian countries of Austria, Central and Eastern Europe, Germany, and Italy. This is the case in Generali's nonlife business and France is also an important contributor to life and savings.